The Department for Work and Pensions (DWP) has been warned over its strict new punishments for benefits claimants, including powers to access bank accounts and seize cash from people suspected of being benefits cheats.
Under new powers introduced by the Labour Party government, the DWP can also strip driving licences from claimants. These measures apply to Universal Credit, Pension Credit and Employment and Support Allowance (ESA) claimants.
Social Security Advisory Committee raises concerns
In a letter to the DWP, Dr Stephen Brien, Chair of the Social Security Advisory Committee, has voiced concerns about the new regime. Writing to Baroness Sherlock OBE, Minister of State at the Department for Work and Pensions, Dr Brien urged caution over how the powers will be used.
Dr Brien warned: "Our understanding of the Department’s position is that a significant group of people who are no longer subject to existing recovery routes are able to repay debts owed to the Department but are choosing not to do so.
"We understand that the proposed regime has been designed on the basis that these individuals can be identified with sufficient accuracy and distinguished from those who are unable to engage or repay. We have not seen this data."
Concerns over distinguishing those who cannot pay from those who will not
The Committee chair added: "We further understand that the most intrusive powers, including direct deduction orders from bank accounts and applications for driving disqualification, are intended to be reserved for a relatively small number of cases involving persistent non-engagement where other recovery routes have proved ineffective."
Dr Brien continued: "Throughout our scrutiny, a recurring theme was how the Department will distinguish between those who cannot engage and those who will not engage, and between those who cannot pay and those who will not pay."
He noted: "In the Committee’s view, the success of the proposed regime will depend heavily on the Department’s ability to make these distinctions accurately and consistently, particularly where individuals are not engaging and information about their circumstances is incomplete."
Risk of wider impact on vulnerable claimants
Dr Brien stated: "The Committee’s principal concern is not with the objective of recovering debts that are lawfully owed, nor with the policy intent underpinning the Regulations. Rather, it is whether the proposed framework can deliver that intent in practice. In particular, we seek further assurance that these powers can be exercised safely, fairly, lawfully, and consistently in practice."
He added: "There remains a risk that powers intended for a relatively narrow group of deliberate non-payers may in practice affect a wider group whose circumstances are less well understood, and may have an adverse safeguarding impact."
